Needham is highly regarded by the staff at Durham

The 20-year-old academy graduate has impressed with his off-spin bowling and middle-order batting, claiming 3-92 in his one Championship match to date.

"Young English spinners are a rare commodity and we're lucky to have one as promising," said boss John Morris.

Meanwhile Chris Taylor has been allowed to be freed from the final year of his contract and paceman Simon Cusden will also leave with immediate effect.